Greenberg: With China IPOs, Fun Has Just Begun

As with any hot IPO (initial public offering) market, don’t confuse quantity with quality.

At best, the performance so far this year has been mixed.

Data from ISI Group shows that of 23 IPOs listed in the U.S. in the past four months: Ten are up, 11 are negative and one is unchanged.

The best performer of all—Youku—is still up around 140 percent. And that’s even after losing about 25 percent since almost the minute I started talking about it on The Strategy Session. That’s when I reminded you that its losses are growing.

The toughest part for any U.S. investor in these companies, of course, is researching them. It’s just plain hard to do.

And the SEC (Securities and Exchange Commission) filings don’t really help. There are just so many related parties.

And the corporate structures? Good luck trying to figure those out.

But this is one party that isn’t about to end—at least not anytime soon. According to ISI, the fun has just begun. When it comes to china IPOs, there’ll be even more next year.